I can assure you that the Kindle does work in Europe. And you don't need a credit card registered to a US address, as you can purchase books from Amazon using gift vouchers (and, of course, there are other places from which you can obtain Kindle books).
What we don't have in Europe is Whispernet, but that's not a show-stopper as you can purchase books on your PC and transfer to the Kindle via USB.
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